Kuwait's Burgan completes $356m bond issue

Kuwait-based Burgan Bank, which announced on Saturday that it had sealed a deal to acquire Eurobank Tekfen, the Turkish arm of EFG Eurobank, has completed a KD100m ($356m) bond issue.

The ten-year subordinated LT2 bond, callable after year five upon receipt of regulatory approvals, was issued in fixed and floating rate tranches.

The proceeds of the bond will be used to support the bank's capital after acquiring EuroBank Tekfen, it said in a statement.

It added that Burgan Bank would continue its strategy of raising funds from the debt capital markets to strengthen its capital base, diversify its investor base and provide financial flexibility to the bank.

The bank last went to market in September 2010 raising a $400m, 10-year bond.

Burgan Bank said on Saturday that the Eurobank Tekfen deal was worth KD98.88m ($351m).

Majed Essa Al Ajeel, Burgan Bank chairman, said: "This is a landmark transaction, not only for Burgan Bank but also for the development of the local debt capital markets by issuing the bond with the largest and longest tenor to date.

"Since the onset of the global economic crisis, Kuwait's bond market has been starved of quality bond offerings, so it is crucial that local banks help to stimulate supply.

"We strongly believe that a fully functioning and vibrant local bond market is a key element in the development of Kuwait's private sector."

KIPCO Asset Management Company (KAMCO) and Watani Investment Company (NBK Capital) jointly managed the bond issuance.

Related:
Companies

Market Performance

Burgan Bank
335.0
15.0 4.69 (%)
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
Why banking in the Gulf will never be the same again

Why banking in the Gulf will never be the same again

New technologies are emerging in banking and finance at a rapid...

How Gulf SWFs have thrown funding lifeline to tech ventures

How Gulf SWFs have thrown funding lifeline to tech ventures

Saudi Arabia and other Gulf states have ploughed money into hot...

Saudi Arabia signals new investment strategies in $3.5bn Uber deal

Saudi Arabia signals new investment strategies in $3.5bn Uber deal

Deal makes the Public Investment Fund a player in the technology...

Most Popular
Most Discussed
sponsoredTracking